President Xi Jinping told Spain's prime minister on April 11 that China and the European Union must join together in defending globalisation and opposing "unilateral acts of bullying", in a clear swipe at the US President Donald Trump's tariff policies. (Photo by Pablo Blazquez Dominguez/Getty Images)

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China, EU must oppose tariff ‘bullying’, Xi tells Spanish PM

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President Xi Jinping told Spain’s prime minister on April 11 that China and the European Union must join together in defending globalisation and opposing “unilateral acts of bullying”, in a clear swipe at the US President Donald Trump’s tariff policies.

Xi, in his first public comments on the issue since Trump launched his tariff offensive last week, said there could be “no winners” in any trade war, and he said the EU had a key role to play in ensuring global economic stability.

Spanish Prime Minister Pedro Sanchez said China and the United States needed to hold talks to defuse the situation, and he also called for a more balanced relationship between Beijing and the 27-nation EU, which has its own trade issues with China.

“China has always regarded the EU as an important pole in a multipolar world, and is one of the major countries firmly supporting the EU’s unity and growth,” Xi told Sanchez during their talks in Beijing, according to the Xinhua news agency.

“China and the EU should fulfill their international responsibilities, jointly safeguard the trend of economic globalisation and the international trade environment, and jointly oppose unilateral acts of bullying,” Xi added.

In a stunning reversal, Trump said on April 9 he would temporarily lower hefty duties he had just imposed on dozens of countries, including the EU-27, but further jacked up tariffs on Chinese imports to over 145 per cent, escalating a high-stakes confrontation between Washington and Beijing.

China has retaliated by imposing 125 per cent tariffs on US imports.

In his talks with Sanchez, Xi talked up the ability of China and the EU, respectively the world’s second and third biggest economies, to counter Trump’s tariffs.

“There are no winners in a tariff war,” Xi said, without explicitly mentioning Trump or the United States, prompting the Spanish leader to say: “Trade wars aren’t good – the world needs China and the US to talk.”

Sanchez’s trip to Beijing, his third in as many years, aims to forge closer economic and political ties with China amid the global fallout from Trump’s tariff policy, seeking to position Spain as an interlocutor between China and the EU and to attract more Chinese investment.

Spanish officials have rejected a US warning that moving closer to the Asian country would be “cutting your own throat”.

We believe there are opportunities to deepen relations, but it’s important that China shows sensitivity to European demands for more balanced relations,” Sanchez said, referring to the EU’s trade deficit with Beijing, which last year exceeded $300 million.

The EU describes China as a “partner for cooperation, an economic competitor and a systemic rival”.

During a press conference at the Spanish embassy in Beijing, Sanchez said the two countries had signed agreements on science, technology, education and the film industry, as well as protocols regarding pork and cherry exports.

According to Xinhua, Xi said Spain and China should tap the potential for cooperation in new energy, high-tech manufacturing and smart cities.

Spain receives crucial investment flows from China that are of high interest to the EU as they mainly involve advanced technology, such as batteries, electric vehicles and hydrogen, in which the bloc lags behind the Asian country.

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